The Increased Efficiency and Specialization That Results from Globalization Illustrates

question 85

Multiple Choice

The increased efficiency and specialization that results from globalization illustrates the:

• A) scarcity principle.
• B) principle of comparative advantage.
• C) cost-benefit principle.
• D) principle of increasing opportunity costs.

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Definitions:

Purely Competitive

Market structures characterized by many buyers and sellers, where no single entity has the market power to influence the price of a homogeneous product.

Profit-Maximizing

The process by which a firm adjusts its production and sale to achieve the highest possible profit.

Short-Run

A period during which at least one input in the production process is fixed, affecting the firm's ability to adjust to changes in demand.

Average Total Costs

dividing the total production costs by the quantity of produced units gives the cost for each unit.